Add or Drop 1) Jake's Sporting Goods has two departments: Sports Apparel and Sports Equipment. Department income statements for the most recent year appear below: Sales Variable Costs Fixed Expenses Contribution margin Traceable Salaries Rent Traceable Advertising Depreciation Allocated Marketing Costs Allocated Administrative Costs: Sports Apparel Sports Equipment $650,000 $9,000,000 250,000 $3,200,000 $400,000 $5,800,000 $150,000 $1,300,000 $150,000 $700,000 $80,000 $800,000 $100,000 $600,000 $70,000 $850,000 $100,000 $600,000 $650,000 $4,850,000 ($250,000) $950,000 Total Fixed Costs Segment Margin The company is considering dropping Sports Apparel. If Sports Apparel is dropped, the traceable salaries and traceable advertising can be eliminated. The depreciation is for furniture and fixtures that have no resale value. The rent is allocated to the segments based on the square footage of floor space occupied by the segment and the total rent would remain unchanged. The other allocated costs will not be reduced if the segment is dropped. What will the impact on overall profits be if the segment is dropped